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HomeMy WebLinkAbout6. NEW BUSINESS 08/21/2007 INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois TO: CHIEF J. DAHLBERG DEPUTY CHIEF M. SEMKIU 711. ~ FROM: DATE: JULY 5, 2007 SUBJECT: DEPARTMENT AUCTION VENDOR Attached for your review is a memorandum issued by Property Officer Jim Herman outlining the department's current property auction provider and his proposal to change providers. As noted in his memorandum, approximately three years ago the department elected to discontinue its practice of coordinating and holding a public auction of abandoned property based upon the personnel costs involved and the fact that little money was generated. Since that time the department has used the services of Marcy & K's to auction abandoned property. Although some resources were used to transport the property, the process was exceptionally efficient for our purposes. Additionally, funds generated were higher than those generated by the department and no personnel overtime costs were involved. Unfortunately, auctioning property held by police agencies has not generated profits acceptable to the auction provider. As a result the current provider has been reluctant to hold these auctions. As part of his duties as president of the Illinois Association of Property & Evidence Managers, Jim Herman became familiar with "PropertyRoom.com" an Internet service devoted entirely to the auction of abandoned property held by police agencies throughout the country. As indicated in his memorandum, PropertyRoom.com will pick up property on a regular basis from agencies. The property is then made available for sale and is listed on their WEB site. The WEB site is similar in design and function to that of e-bay. Departments receive 50% of the selling price for items listed on the WEB site for sales up to $1,000.00. For sales above $1,000.00, departments receive 75% of the selling price. In both cases, credit card fees are split equally between the vendor and the police department. As indicated in his memorandum, the following local police departments use PropertyRoom.com as their auction provider; Arlington Heights, Buffalo Grove, Deerfield, Des Plaines, Glenview, Hoffman Estates, Schaumburg, Skokie and Wheeling. Each department has had positive experiences with the auction company. It is my recommendation to enter into an agreement with PropertyRoom.com for their services on a trial basis for six months. As indicated in the cover letter, language indicating cancellation may be given with thirty days notice may be included in the contract. c: Deputy Chief Rzepecki Property Officer Herman Page - 1 - \ \Pf1 \pf1 pi$\MSemkiu\USRDA T\My Documenls\Property\ProprtyRom .com. doc ~ RESOLUTION NO. A RESOLUTION AUTHORIZING THE EXECUTION OF A SERVICE AGREEMENT WITH "PROPERTYROOM.COM" FOR THE SALE AND DISPOSAL OF ABANDONED PROPERTY BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That this Resolution is meant to supplement the provision of Chapter Four entitled "Appointive Village Officers", Articles V. "Finance Department and VIII. "Department of Police" of the Village Code. SECTION TWO: That the Deputy Chief of Police is authorized to enter into a Service Agreement with "PropertyRoom.com" for the sale and disposal of all abandoned property in the custody of the Mount Prospect Police Department which is attached to and made a part of this resolution. SECTION THREE: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this th day of August, 2007. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk H:\CLKO\files\WIN\RES\POLICEDEPTSERVICEAGREEMENTAUCTIONABANDONEDPROPETY AUGUST2007.doc PROPERTY DISPOSITION SERVICES AGREEMENT PropertyRoom.com, Inc.. a Delaware corporation ("Property Room"), enters into this agreement (the "Agreement"), with the customer identified below (the "Owner") for the auction and disposition of personal property (the "Disposition Services"), in accordance with the Terms and Conditions and Addenda, if any, attached hereto and listed below. Beginning Agreement will terminate on herein. , (the "Start Date") Owner engages the Disposition Services of PropertyRoom. This , (the "Termination Date"), or at such other time as provided OWNER INFORMATION: Village of Mr. Prospect Police Department [Owner Name] 112 E. Northwest Hwy. [Address] SCHEDULES, SUPPLEMENTS AND OTHER ATTACHMENTS: (Mark only if Included) Terms and Conditions ~ Addendum No MT. Prospect, IL 60056 [Phone] THIS AGREEMENT INCLUDING ALL OF THE TERMS AND CONDITIONS SET FORTH ON THE ATTACHED TERMS AND CONDITIONS, AND ALL OTHER ATTACHMENTS INDICATED IN THE BOX ABOVE, IS THE PARTIES' ENTIRE AGREEMENT AND CANNOT BE MODIFIED EXCEPT IN WRITING BY THE DULY AUTHORIZED REPRESENTATIVES OF BOTH PARTIES. EXECUTED on the date(s) indicated below: [Name and TItle] Village of Mr. Prospect Police Department [Legal Name of Owner] By: By: [Name and Title] By: [Name and IIUe] By: [Name and TItle] PropertyRoom.com. Inc. 26421 Crown Valley Parkway, Suite 200 Mission Viejo. California 92691 Phone: 800-799-2440 Federal Tax 10 86-0962102 Rev 11712006 Page 1 of4 TERMS AND CONDITIONS 1. Property to be Sold. From time to time, Owner will designate items of personal property (the "Property") that it desires to provide to PropertyRoom for Disposition Services. PropertyRoom retains the right to accept or reject certain items in its sole discretion. 2. Title. Owner shall retain legal title to the Property until it Is purchased by auction or otherwise disposed of in accordance with this Agreement at which time Owner will be deemed to have transferred tltle to the purchaser or other acquirer of the item of Property. Owner appoints PropertyRoom as Its attorney-in-fact to sign any and all documents necessary to assign to purchasers of Property all of Owner's right, title and interest in and to Property sold or disposed. All cash receipts, accounts receivable, contract rights, notes, general intangibles, and other rights to payment of every kind, arising out of the sales and dispositions of Property (collectively the "Proceeds") belong to Owner, subject to PropertyRoom's right to PropertyRoom's Net Proceeds and funds attributable to Credit Card Costs and other transaction costs. Owner's Property shall, at all times before sale or disposition, be subject to the direction and control of Owner. 3. Method of Selling Property. PropertyRoom will, on Owner's behalf, list Property for sale by auction to the public on the Worid Wide Web of the Internet on one or more domain names selected by PropertyRoom. To the extent that any Property is not sold by auction, PropertyRoom may, in any commercially reasonable manner selected by PropertyRoom,. dispose of Property. PropertyRoom will determine all aspects, terms and conditions of auctions of Property and dispositions of Property not purchased at auction, subject to the ultimate control of Owner. PropertyRoom will be responsible for all phases of submitting the Property for auction, including, but not limited to, determining when Property will be auctioned, setting the opening and reserve prices of Property, if any; determining the selling price, setting the length of time a Product will be auctioned; creating text and graphics to describe and depict Property submitted for auction; collecting all purchaser information (such as purchaser's name, billing address, shipping address, and credit card information); approving purchasers' credit card purchase transactions; and collecting auction proceeds for completed sales from purchasers. PropertyRoom shall use its best efforts in auctioning and selling the Property on the Internet and disposing of Property that does not sell at auction. PropertyRoom shall sell and dispose of all Property "as is" without any liability to the Owner. PropertyRoom is solely responsible for identifying and resolving sales and use tax collection issues arising from Property sales, including the necessity of charging and collecting such taxes. 4. Allocation of Sale. Proceed.. a. The total amount paid by the purchaser shall be called the "Sales Price". The Sales Price shall include the winning bid amount (the "Winning Bid") and all costs, shipping and handling charges, taxes, and insurance costs associated with the transaction and paid by the purchaser. b. For each item of Property, Owner will be credited with 50% of the first $1,000 of the Winning Bid and 75% of the portion, if any, of the Winning Bid that exceeds $1,000. From this amount, the owner's pro rata share of transaction fees, if any, assessed by the credit card processor ("Credit Card Costs") will be deducted. c. Credit Card Costs will be borne by Owner and PropertyRoom in proportion to the percentage of the revenue credited to the parties for each underiying transaction. d. Amounts received by the Owner will be called "Owner's Net Proceeds". The following example illustrates how proceeds of a sale are to be allocated. Assume an item of Property sells at auction for a Winning Bid of $100; the buyer pays shipping and handling of $10, insurance of $2, and sales tax of $6. The buyer pays the Sales Price of $118.00 by credit card, and the Credit Card Costs are 2% of the Sales Price. The Credit Card Cost is therefore $2.36 ($118 x .02). The Owner and PropertyRoom each share 50% of the underiying Winning Bid, therefore Credit Card Costs are also shared equally ($1.18 each). The Owner's Net Proceeds are $48.82 ($50.00 less $1.18). 5. Payment Term.. Not less than once every month, PropertyRoom will pay to Owner the amount of Owner's Net Proceeds payable for completed sales during the preceding month. Sales are deemed completed when all items comprising a line item on the original manifest or other list of Property are sold. With each payment of Owner's Net Proceeds, PropertyRoom will make available to Owner a detailed report setting forth the following information for the immediately preceding month: (i) the completed sales during the prior month, including the total amount of related proceeds collected, the Owner's and PropertyRoom's share of Credit Card Costs, the Owner's Net Proceeds; (ii) other dispositions of Property during the month; (iii) the Property, if any, Inventoried by PropertyRoom at the end of the month. 6. PropertyRoom's Obligations Concerning Property In Its Possession. With respect to Property in PropertyRoom's possession: (i) PropertyRoom will exercise due care in the handling and storage of any Property; (ii) Page 2 of 4 6/12/02 PropertyRoom shall keep the Property free of liens, security interests, and encumbrances, and shall pay when due all fees and charges with respect to the Property; (iii) PropertyRoom shall sign and deliver to Owner any UCC-1 financing statements or other documents reasonably requested by Owner; (iv) PropertyRoom shall obtain and maintain insurance in an amount (determined by PropertyRoom) not less than the replacement value of Property in its possession. The insurance will cover the Property against fire, theft, and extended coverage risks ordinarily included in similar policies. PropertyRoom shall give Owner a certificate or a copy of each of the upon Owner's request. 7. Owner's Obligations. Owner will use its best efforts to provide to PropertyRoom such Property as becomes available for sale to the public. Owner will complete paperwork reasonably necessary to convey custodial possession of the item of property to PropertyRoom, including a written manifest or list that describes the item of Property in sufficient detail for identification. Owner agrees that it will not provide Property that is illegal or hazardous, including but not limited to explosives, firearms, counterfeit or unauthorized copyrighted material ("knock-offs"), poisons or pharmaceuticals. 8. Restrictions on Bidding. PropertyRoom and its employees and agents may not directly or indirectly bid for or purchase auctioned Property on the PropertyRoom web site. 9. Representations and Warranties of Owner. Owner hereby represents, warrants and covenants as follows: (i) Property delivered to PropertyRoom is available for sale to the general public without any restrictions or conditions whatever; and (ii) Owner has taken all required actions under applicable law that are conditions precedent to Owner's right to transfer tiUe to the Property to purchasers (the "Conditions Precedent"). 10. Books and Records. PropertyRoom will keep complete and accurate books of account, records, and other documents with respect to this Agreement (the "Books and Records") for at least three years following expiration or termination of this Agreement. Upon reasonable notice, the Books and Records will be available for inspection by Owner, at Owner's expense, at the location where the Books and Records are regularly maintained, during normal business hours. 11. Term and Termination. Unless terminated earlier, the term of this Agreement will begin on the Start Date and terminate on the Termination Date. This Agreement may be terminated if there is a breach by either party of any obligation, representation or warranty contained in this Agreement, upon thirty days prior written notice to the other party unless the breach is cured within the thirty day period, provided, however, if the breach is not capable of being cured within thirty days, the breaching party will have a reasonable amount of time to cure the breach if it begins to cure during the thirty day period and proceeds diligently thereafter. The written notice will specify the precise nature of the breach. The rights of the parties to terminate this Agreement are not exclusive of any other rights and remedies available at law or in equity, and such rights will be cumulative. The exercise of any such right or remedy will not preclude the exercise of any other rights and remedies. Notwithstanding any termination by either party of this Agreement. PropertyRoom will continue to remit amounts due to Owner under this Agreement in connection with any sales made before the effective date of the termination. At the time of termination, any unsold inventory shall continue to be auctioned by Property Room or returned to Owner, at owner's election and cost. 12. Indemnification. Subject to the limitations specified in this Section 12, each party will indemnify, hold harmless and defend the other party and its agents and employees from and against any and all losses, claims, damages, liabilities, whether joint or several, expenses (including reasonable legal fees and expenses), judgments, fines and other amounts paid in settlement, incurred or suffered by any such person or entity arising out of or in connection with (i) the inaccuracy of any representation or warranty made by the party hereunder, (ii) any breach of this Agreement by the party, or (iii) any negligent act or omission by the party or its employees or agents in connection with the performance by the party or its employees or agents of obligations hereunder, provided the negligent act or omission was not done or omitted at the direction of the other party. 13. Limitations on Liability. UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES), ARISING FROM BREACH OF THE AGREEMENT, THE SALE OF PROPERTY, OR ARISING FROM ANY OTHER PROVISION OF THIS AGREEMENT, SUCH AS, BUT NOT LIMITED TO, LOSS OF REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS (COLLECTIVELY, "DISCLAIMED DAMAGES"); PROVIDED THAT EACH PARTY WILL REMAIN LIABLE TO THE OTHER PARTY TO THE EXTENT ANY DISCLAIMED DAMAGES ARE CLAIMED BY A THIRD PARTY AND ARE SUBJECT TO INDEMNIFICATION PURSUANT TO SECTION 12. LIABILITY ARISING UNDER THIS AGREEMENT WILL BE LIMITED TO DIRECT, OBJECTIVELY MEASURABLE DAMAGES. THE MAXIMUM LIABILITY OF ONE PARTY TO THE OTHER PARTY FOR ANY CLAIMS ARISING IN CONNECTION WITH THIS AGREEMENT WILL NOT EXCEED THE AGGREGATE AMOUNT OF PAYMENT OBLIGATIONS OWED TO THE OTHER PARTY HEREUNDER IN THE YEAR IN WHICH LIABILITY ACCRUES; PROVIDED THAT EACH PARTY WILL REMAIN LIABLE FOR THE AGGREGATE AMOUNT OF ANY PAYMENT OBLIGATIONS OWED TO THE OTHER PARTY PURSUANT TO THE AGREEMENT. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, OWNER'S LIABILITY IS NOT Rev 1/7/2006 Page 3 of 4 LIMITED UNDER THIS AGREEMENT WITH RESPECT TO LIABILITY ARISING FROM OWNER'S FAILURE TO SATISFY TIMELY ALL CONDITIONS PRECEDENT. 14. Notice.. Any notice under this Agreement must be in writing. Initially the addresses of the parties will be as follows: (i) If to PropertyRoom: PropertyRoom.com, Inc, Attn: Steven Lupinacci, President. 26421 Crown Valley Parkway, Suite 200, Mission Viejo, Callfomia 92691; and (Ii) If to Owner: At the address stated below Owner's Signature block on the first page of this Agreement. The parties may, from time to time and at any time, change their respective addresses and each will have the right to specify as its address any other address by at least ten days' written notice to the other party. 15. Sev.rablllty. Whenever possible. each provision of this Agreement will be interpreted in such a manner as to be eftective and valid under applicable law, but If any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. 16. Compl.te Agreem.nt. This Agreement and any related documents delivered concurrently herewith, contain the complete agreement between the parties relating to the subject of this Agreement and supersede any prior understandings, agreements or representations by or between the parties, written or oral, which may be related to the subject matter hereof in any way. 17. Attom.ys' F... and Legal Exp.n.... If any proceeding or action is brought to recover any amount under this Agreement, or for or on account of any breach of, or to enforce or interpret any of the terms, covenants, or conditions of this Agreement, the prevailing party will be entitled to recover from the other party, as part of the prevailing party's costs, reasonable attomeys' fees, the amount of whiCh will be fixed by the court, and will be made a part of any judgment rendered. 18. Furth.r As.urance.. PropertyRoom and Owner will each sign such other documents and take such actions as the other may reasonably request in order to effect the relationships, services and activities contemplated by this Agreement and to account for and document those activities. 19. Gov.rning Law. The intemallaw, and not the law of conflicts, of the state in which the Owner is located will govem all questions conceming the construction, validity and interpretation of this Agreement and the performance of the obligations imposed by this Agreement. The proper venue for any proceeding at law or in equity will be the state and county in which the Owner is located, and the parties waive any right to object to the venue. 20. R.lation.hlp of the Partl... The relationship created hereunder between Owner and PropertyRoom will be solely that of independent contractors entering into an agreement. No representations or assertions will be made or actions taken by either party that could imply or establish any agency, joint venture, partnership, employment or trust relationship between the parties with respect to the subject matter of this Agreement. Except as expressly provided in this Agreement, neither party will have any authority or power whatsoever to enter into any agreement, contract or commitment on behalf of the other, or to create any liability or obligation whatsoever on behalf of the other, to any person or entity. Whenever PropertyRoom is given discretion in this Agreement, PropertyRoom may exercise that discretion solely in any manner PropertyRoom deems appropriate. 21. Force Maj.ure. Neither party will be liable for any failure of or delay in the performance of this Agreement for the period that such failure or delay is due to acts of God, public enemy, war, strikes or labor disputes, or any other cause beyond the parties' reasonable control (each a "Force Majeure"), it being understood that lack of financial resources will not to be deemed a cause beyond a party's control. Each party will notify the other party promptly of the occurrence of any Force Majeure and carry out this Agreement as promptly as practicable after such Force Majeure is terminated. The existence of any Force Majeure will not extend the term of this Agreement. 22. Count.rparts. This Agreement may be signed in any number of counterparts. Rev 1/7/2006 Page 4 of 4 Village of Mount Prospect Community Development Department MEMORANDUM ~.M~ elz.' 01 TO: FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF COMMUNITY DEVELOPMENT DATE: AUGUST 16, 2007 THE ALTER GROUP - CLASS 6B INDUCEMENT RESOLUTIONS SUBJECT: Attached to this memorandum is a resolution that would grant approval of a Class 6b property tax incentive for the Alter Group who is proposing the construction of two office/warehouse facilities located at 1660 and 1780 Wall Street. This property is currently vacant and is located at the NW corner of Algonquin and Elmhurst Roads. If approved, the Alter Group intends to construct two industrial buildings totaling 256,000 square feet at this location. The total investment in the subject property would exceed $12 million to construct these buildings. While final tenants have not been secured for these buildings, it is anticipated that over 300 jobs would be created at this location based upon the size of the facilities. The Alter Group is requesting the Class 6b abatement so that they can competitively recruit prospective tenants for the development. It is estimated that the abatement would reduce the amount of property tax per square foot from $3.24 to $1.44 for this property. The petitioner has provided supporting documentation that demonstrates that the majority of industrial buildings in the market have tax rates ranging from $1 to $1.77 per square foot and that they would be at a competitive disadvantage if they did not have the 6b status. Please forward this memorandum to the Village Board for their review and consideration at their meeting on August 21st. Staff will be present at that meeting to further discuss this matter. ~~7~ William J. Cooney Jr. :b RESOLUTION NO. A RESOLUTION IN SUPPORT OF ALTER GROUP AND LCP 1660/1780, LLC MAKING APPLICATION FOR COOK COUNTY CLASS 6B TAX ABATEMENT FOR 1660 AND 1780 WALL STREET. MOUNT PROSPECT. COOK COUNTY. ILLINOIS WHEREAS, the Village of Mount Prospect encourages community development to provide for economic growth and career opportunities; and WHEREAS, through property tax incentives offered by Cook County, various opportunities exist for new businesses to become established in the Village of Mount Prospect, Cook County; and WHEREAS, without the Cook County property tax incentives, the Village of Mount Prospect is at a competitive disadvantage with the neighboring counties of Lake and DuPage in attracting industrial development; and WHEREAS, Alter Group and LCP 1660/1780, LLC, has requested the Village of Mount Prospect to support its application for a Class 6B Real Property Classification at 1660 Wall Street and 1780 Wall Street, Mount Prospect, Cook County (the "Subject Properties"); and WHEREAS, the corporate authorities of the Village of Mount Prospect believe that this request is in the best interest of the economic development in the Village of Mount Prospect. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: That the Village President and Board of Trustees of the Village of Mount Prospect do hereby support and consent to the application of Alter Group and LCP 1660/1780, LLC , for a Class 6B Prope~ Classification from Cook County, which allows a 16% assessment level for the first 10 years, 23% in the 11 year and 30% in the 12th year for the Subject Properties located at 1660 Wall Street and 1780 Wall Street, and legally described in Exhibit "A" and further identified by Permanent Index Numbers: 1660 Wall Street - 08-23-203-028; 08-23-203-029 and 08-23-203-030 1780 Wall Street - 08-23-203-026; 08-23-203-027 and 08-23-203-038. SECTION TWO: That the Village of Mount Prospect supports industrial growth, increased employment and economic development and this proposed development is in furtherance of this goal. The Board of Trustees of the Village of Mount Prospect further finds that this incentive is necessary for development to occur on the Subject Property. SECTION THREE: That development of the Subject Property is subject to compliance with all requirements of the 1-1 limited Industrial District. SECTION FOUR: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this th day of August, 2007. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk H:\CLKO\files\WIN\RES\6b resolution forlakeplazawallstreetaugust2007.doc EXHIBIT IIAII LEGAL DESCRIPTION LOTS 3 TO 7, INCLUSIVE, IN LAKE CENTER PLAZA. A RESUBDMSION OF PART or LOT 4 IN UNNEWAN'S DMSION OF THE SOUTH 3/4 OF THE EAST 1/2 OF THE NORTHfAST 1/4 AND THE WEST 1/2 OF THE NORTHEAST 1/4 OF SECTION 23, TOWNSHIP 41 NORTH, RANGE 1" EAST OF THE THIRD PRINCIPAL MERIDIAN, AND THE SOUTH 477.78 Fen OF THE WEST 1/2 OF THE SOUTHEAST 1/4 OF SECTION 14, TOWNSHIP 41 NORTH. RANGE 11, fAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PlAT OF SAID lAKE CENTER PlAZA RECORDED JULY " 1988, Jl.S DOCUMENT 88291118. IN COOK COUNlY, ILUNDIS. ALSO LOT 2 IN LAKE CENTER PLAZA RESUBDMSlON NO.2, A RESUBDMSION OF LOTS 1 AND 2 IN LAJ<E CENTER PLAZA, A RESUBDMSION OF PART OF LOT 4 IN UNNEMAN'S DIVISION OF THE SOUTH 3/4 OF TI-lE fAST 1/2 OF THE NORTHEAST 1/4 AND THE WEST 1/2 OF THE NORTHEAST 1/4 OF SECTION 23, TOWNSHIP 41 NORTH, RANGE 11. fAST OF THE TI-lIRD PRINCIPAL MERIDIAN, AND THE SOUTH 477.78 FEET OF THE WEST 1/2 OF THE SOUTHEAST 1/4 OF SECTION 14, TOWNSHIP 41 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT OF SAID lAKE CENTER PLAZA RESUBOMSION NO.2 RECORDED JULY " 1991 /is DOCUMENT 91321871, IN COOK COUNTY, IWNO/S. ALSO THAT PART OF VACATED WALL STREET IN LAKE CENTER PLAZA, A RESUBDIVISION OF PART OF LOT 4 IN UNNEMAN'S DMSlON OF THE SOUTH 3/4 or THE EAST 1/2 OF THE NOFmiEAST 1/4 AND THE WEST 1/2 OF THE NORTHEAST. 1/4 OF SECTION 23, TOWNSHIP 41 NORTH, RANGE ", EAST OF THE THIRD PRINCIPAL MERIDIAN, AND THE SOUTH 477.78 F'EET or THE WEST 1/2 OF THE SOUTHEAST 1/4 OF SECTION 14, TOWNSHIP 41 NORTH, RANGE 1 1,EAST OF THE THIRD PRINCIPAL MERIDIAN. ACCORDING TO THE PLAT OF SAID LAKE cENTER PlAZA REQOROEOJUL Y " 1988. Jl.S DOCUMENT 88291118, BEING' BOUNDED AND DESCRIBED Jl.S FOLLOWS: COMMENqlNG AT THE SOUTHEAST CORNER OF LOT 6 IN SAID LAKE CENTER PLAZA; THENCE NORTH 00 DEGREES 00 MINUTES 00 SECONDS EAST AlONG THE EAST UHE OF SAID LOT 6, 171.83 FEET .TO A POINT. OF B~GINNING AT A CORNER OF SAID LOT 6; THENCE CONTINUING NORTH 00 DEGREES ODMINUlESOO SECONDS EAST ALONG THE NORTHERLY EXTENSION OF THE EAST UNE or SAID LOT 6, 1Q7. 78 FttT TQ AN INTERSECTION WITH THE CURVED SOUTHtASTERLY l.I~EOFL,OT 7 IN .atPG~PlAZA;TH~QE ~~Y, SOUTHERLY AND SOUTHE"ASTERL,Y AlONe THE SQUTfJ . ..'!( tJNEOF .SAlD LOT 7 AND THE NORTHEASTERLY UNE OF SAID LOT 6, BEING A CURVED uNE .COlilVEx ~LY AND HAVING A RADIUS OF 55.00 FEET, AN ARC DISTANCE OF 150.64 FEET TO THE POINT OF BEGINNING (THE CtlORD OF SAID ARC BEARS SOUTH 00 DEGREES 00 MINUTES 00 SECONDS EAST. 107.78 F'EET), IN COOK COUNlY, IlliNOIS. Mount Prospect ~ Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL E. JANONIS 'B~. H:r, e.12.'!ef7 FROM: VEHICLE I EQUIPMENT SUPERINTENDENT DATE: AUGUST 16, 2007 SUBJECT: 2007 NORTHWEST MUNICIPAL CONFERENCE VEHICLE AUCTION As you are aware, each year the Northwest Municipal Conference hosts two vehicle auctions in the fall. This year the Village of Mount Prospect will be hosting the first auction on September 15, 2007, at the Public Works Facility. Hosting this auction proves to be a great benefit to the Village and we have hosted the auction for several years. There is a 5% administration fee charged to the member communities, but the host community is only charged a 2.5% administration fee. The Village will have nine (9) cars, three (3) trucks, and two (2) pieces of equipment that have been replaced and are available for the above-mentioned auction. Attached is an ordinance declaring the fourteen retired vehicles surplus. With your concurrence, I would like to present this ordinance to the Mayor and Board of Trustees for their consideration at the August 21, 2007 Village Board Meeting. James( 11~-b Glen R. Andler Director of Public Works JG c: Deputy Director Sean Dorsey attachment H:\Administration\ORGANIZE\NWMC\Auction07\NWMC 2007 Auction Memo.DOC ~ mla 8/14/07 ORDINANCE NO. AN ORDINANCE AUTHORIZING THE SALE OF CERTAIN PERSONAL PROPERTY OWNED BY THE VILLAGE OF MOUNT PROSPECT WHEREAS, in the opinion of at least three-fourths of the corporate authorities of the Village of Mount Prospect, Cook County, Illinois, it has been determined that it is no longer necessary, useful, or in the best interest of the Village of Mount Prospect to retain the personal property specified herein; and WHEREAS, it has been determined by the President and Board of Trustees of the Village of Mount Prospect that the best interests of the Village would be served by the sale of the personal property at a public auction conducted by the Northwest Municipal Conference, which auction will be held on Saturday, September 15, 2007 at 10:00 A.M. at the Mount Prospect Public Works Facility, 1700 W. Central Road, Mount Prospect, Illinois. NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWER: SECTION ONE: In accordance with the provisions of Section 65 5/11-76-4 of the Illinois Compiled Statutes, the corporate authorities of the Village of Mount Prospect find that the items of personal property listed on the attached, which are owned by the Village of Mount Prospect, are no longer useful or necessary to the Village and that the best interests of the Village will be served by selling said personal property at a public auction being the subject of this Ordinance, to the highest bidder. SECTION TWO: The Northwest Municipal Conference shall conduct a public auction on Saturday, September 15,2007 at 10:00 A.M. at the Mount Prospect Public Works Facility, 1700 W. Central Road, Mount Prospect, Illinois. Anyone interested may view the personal property at this location and date between the hours of 8:00 A.M. and 10:00 A.M. SECTION THREE: The Northwest Municipal Conference will cause a public notice informing the general public of this public auction to be published in a newspaper of general circulation. SECTION FOUR: No bid shall be accepted for the sale of any item which is less than the minimum value set forth on the attached list, unless the Village Manager or the designee of the Village Manager so authorizes at the time of the auction. Vehicle auction Page 2/3 SECTION FIVE: Within ten (10) days after the successful bid is accepted, the successful bidder shall tender to the Village of Mount Prospect the consideration specified in the bid accepted and upon receipt of such consideration, the Village Manager is hereby authorized to transfer title of said personal property to the successful bidder. SECTION SIX: This Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this day of August, 2007. Irvana K. Wilks Mayor ATTEST: M. Lisa Angell Village Clerk H:\CLKO\files\WIN\ORDINANC\PW AUCTION sept 2007.doc Auction Page 3 of 3 ITEMS TO BE PLACED FOR AUCTION SEPTEMBER 15, 2007 MOUNT PROSPECT PUBLIC WORKS FACILITY 1700 WEST CENTRAL ROAD MOUNT PROSPECT, ILLINOIS Village V. I. N. Year/Make/Model Type Minimum I.D. Price 306A 2FAFP71VV91X161571 2001 Ford Crown Victoria Car $ 500.00 307A 2FAFP71VV41X161574 2001 Ford Crown Victoria Car $ 500.00 313A 2FAFP71VV01X161572 2001 Ford Crown Victoria Car $ 500.00 4565A 2FAFP71VV81X161576 2001 Ford Crown Victoria Car $ 500.00 P-8A 2FAFP71VV45X148801 2005 Ford Crown Victoria Car $ 2000.00 P-11A 2FAFP71VV65X148802 2005 Ford Crown Victoria Car $ 2000.00 P-14A 2FAFP71VV85X148803 2005 Ford Crown Victoria Car $ 2000.00 P-18A 2FAFP71VVX5X148804 2005 Ford Crown Victoria Car $ 2000.00 i-22A 1G1BL52P2TR127171 1996 Chevrolet Caprice Car $ 100.00 547 2HTAA 1951 DCA 15164 1983 International Truck $ 100.00 2736A 1 GCGC24K2SE 121969 1995 Chevrolet C2500 Truck $ 100.00 2744A 1GCGK24K3SE133292 1995 Chevrolet K2500 Truck $ 100.00 4507 UL22551 1988 Ford 1720 Tractor $ 100.00 4543 781297 1978 Puckett T450 Paver $ 100.00 H:\Administration\ORGANIZE\NWMC\Auction07\2007 Auction Vehicles.doc Mount Prospect INTEROFFICE MEMORANDUM Village of Mount Prospect Mount Prospect, Illinois FROM: MICHAEL E. JANONIS, VILLAGE MANAGER DIRECTOR OF FINANCE AUGUST 16, 2007 "'b~. ~~l" . \a\ 01 TO: DATE: SUBJECT: HOME RULE SALES TAX INCREASE PURPOSE: To present for the Board's consideration an ordinance increasing the Village's home rule sales tax rate. BACKGROUND: At the August 14, 2007 Committee of the Whole meeting, the Village Board was presented with options for a permanent funding source for capital projects. It is estimated that between $750,000 and $1 million of annual funding is required to support mid-range capital projects of the Village. There were only two viable options for this permanent funding source, a property tax increase or an addition to the home rule sales tax. The impact of implementing a property tax increase was felt to be too burdensome on property owner so an increase to the home rule sales tax rate was to be given further consideration. DISCUSSION: As requested I have prepared the two ordinances required to implement the increase to the home rule sales tax effective January 1, 2008. The ordinances will need Board approval and must be filed with the Illinois Department of Revenue by October 1, 2007 to make the proposed effective date. If the Department of Revenue deadline is not met, the Village will have to wait until July 1, 2008 to implement the tax increase. Please place this item on the agenda for the August 21, 2007 Village Board Meeting for further consideration. I will be on hand to facilitate discussion and answer any questions regarding the proposed increase. RECOMMENDATION: It is recommended the Village Board approve the attached ordinance increasing the Village's home rule sales tax rate to be effective January 1, 2008. ~tf/, U- DAVID O. ERB DIRECTOR OF FINANCE DOEI F~ ~ ORDINANCE NO. AN ORDINANCE AMENDING APPENDIX A - DIVISION II OF THE VILLAGE CODE OF MOUNT PROSPECT PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES THE DAY OF 2007 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the _ day of 2007 ORDINANCE NO. AN ORDINANCE AMENDING APPENDIX A - DIVISION II OF THE VILLAGE CODE OF MOUNT PROSPECT BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT COOK COUNTY ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: Section 8.1102, entitled "Imposition of Tax", of Appendix A, Division II of the Village Code of the Village of Mount Prospect shall be amended by deleting in its entirety the current section 8.1102 and inserting in lieu thereof a new Section 8.1102 "Tax Imposed" to be read as follows: Section 8.1102: IMPOSITION OF TAX: 1/1/04 through 12/31/07 0.75% of gross receipts of tangible personal property 01/01/08 and thereafter 1.00% of gross receipts of tangible personal property SECTION TWO: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this _ day of , 2007. Irvana K. Wilks, Village President ATTEST: M. Lisa Angell, Village Clerk ORDINANCE NO. AN ORDINANCE AMENDING APPENDIX A - DIVISION II OF THE VILLAGE CODE OF MOUNT PROSPECT PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES THE DAY OF 2007 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the _ day of 2007 ORDINANCE NO. AN ORDINANCE AMENDING APPENDIX A - DIVISION II OF THE VILLAGE CODE OF MOUNT PROSPECT BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT COOK COUNTY ILLINOIS ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS: SECTION ONE: Section 8.1202, entitled "Imposition of Tax", of Appendix A, Division II of the Village Code of the Village of Mount Prospect shall be amended by deleting in its entirety the current section 8.1202 and inserting in lieu thereof a new Section 8.1202 "Tax Imposed" to be read as follows: Section 8.1202: IMPOSITION OF TAX: 1/1/04 through 12/31/07 0.75% of gross receipts of sales of service 01/01/08 and thereafter 1.00% of gross receipts of sales of service SECTION TWO: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form in the manner provided by law. AYES: NAYS: ABSENT: PASSED and APPROVED this _ day of ,2007. Irvana K. Wilks, Village President ATTEST: M. Lisa Angell, Village Clerk Mount Prospect Village of Mount Prospect Mount Prospect, Illinois ~ INTEROFFICE MEMORANDUM TO: MICHAEL E. JANONIS, VILLAGE MANAGER FROM: DIRECTOR OF FINANCE DATE: AUGUST 16,2007 SUBJECT: UPDATED FUND BALANCE POLICY A draft of the updated Fund Balance Policy was presented to the Village Board at the August 14, 2007 Committee of the Whole meeting. The updated policy, which includes detailed action steps for when balances in a particular fund exceed or fall below the recommended level, was well received. There was one suggestion by the Board that mandates for action be put in place for when a balance exceeds the recommended level by a certain amount. I have added language to the updated policy that addresses this point. The general rule will be to require Board action to reduce fund balances when they reach 100% of the subsequent fiscal year's expenditures. Section IV was added to the draft policy and reads: IV. Excess Reserve Levels: Unless specifically noted for a particular fund, reserves will not be permitted to exceed 100% of their fund's subsequent fiscal year's expenditures. If at any time these reserves exceed the maximum amount allowed, the Village Board will be mandated to transfer excess funds in an amount sufficient to bring reserves below the appropriate amount. This general rule will apply to all funds exqept the General Fund. Reserves in the General Fund will be capped at 50% of the subsequent fiscal year's expenditures. This lower level is recommended due to the large annual budget for the General Fund resulting in a substantial reserve balance. At this reserve level there would be sufficient funds to support anticipated large-scale projects or position the Village well for bond rating purposes. Updated Fund Balance Policy August 16,2007 Page 2 Section II (a) v was added to the draft policy and reads: v. Fund balance for the General fund will be capped at 50% of the subsequent fiscal year's expenditures. If at any time this fund balance exceeds the cap, the Village Board will be mandated to transfer excess funds in an amount sufficient to bring fund balance below the cap. Please review the revised fund balance policy and let me know if you have any questions. I would like to place this item on the August 21 st Village Board meeting agenda for approval. Thanks. L~~ t/C DAVID O. ERB DIRECTOR OF FINANCE DOEI 1:\Policies\Fund Balance\VBM Memo - 8-21-07.doc Fund Balance Reserve Policy Village of Mount Prospect I. Purpose: The purpose of this policy is to establish guidelines in providing for an unrestricted reserve balance in the Village's General Fund as well as other operating and capital funds. II. Policy Considerations: Adequate fund balance is necessary to provide for operational stability and to provide for needs caused by unforeseen events. Additional benefits of maintaining a strong fund balance include higher interest earnings to support the annual budget and the maintenance and potential upgrade to the Village's bond rating. This policy provides for a minimum amount of unreserved fund balance the General Fund and other funds should maintain. As with other financial polices established by the Village, the fund balance policy will use recommended practices from the Government Finance Officers Association as a guide. All fund balances will be reviewed annually during the budget process. III. General Policy: Unreserved and reserved fund balances are established for the following funds: a. General Fund: i. Fund balance shall be maintained at a level equal to 25% of the subsequent fiscal year's expenditures. ii. Should the unreserved fund balance drop below the 25% level, notification will be given to the Village Board and a plan developed to return the balance to the minimum level within a reasonable period of time. iii. Planned drawdown of fund balance below the 25% level will be permitted for operational purposes to cover extraordinary expenditures or bridge a revenue shortfall. Reductions in fund balance are meant to be short term only and must be resolved through the implementation of a new permanent revenue source or reduction in expenditure levels. iv. Surplus fund balance above the 25% level may be transferred to another operating or capital fund to cover expenditures. Any fund balance not transferred for the purpose of funding an operational shortfall or one-time expense, must be transferred to the Capital Improvement Fund to support future capital projects. v. Fund balance for the General fund will be capped at 50% of the subsequent fiscal year's expenditures. If at any time this fund balance exceeds the cap, the Village Board will be mandated to transfer excess funds in an amount sufficient to bring fund balance below the cap. b. Capital Improvement Fund i. Fund balance shall be maintained at 50% of the five-year average for capital expenditures supported by this fund to a maximum of $1 million. ii. Should the fund balance drop below the minimum level, notification will be given to the Village Board and a plan developed to return the balance to the minimum level within a reasonable period of time. iii. Planned drawdown of fund balance below the minimum level will be permitted to cover extraordinary expenditures or high cost projects that occur infrequently. Iv. Surplus fund balance above the minimum level can be used to support ongoing capital projects, transferred to support projects in other capital funds or transferred to other funds as designated by the Village Board. v. Fund balance may be permitted to grow beyond the minimum level to cover anticipated high-cost projects in future years. c. Debt Service Funds i. Fund balance for debt service funds supported by property taxes shall be maintained at a level equal to the amount of the next interest payment. ii. Fund balance for debt service funds supported by alternative revenues shall be maintained at a level equal to 50% of the next year's principal and interest payment. iii. Should fund balance drop below the minimum level, notification will be given to the Village Board and a plan developed to return the balance to the minimum level within a reasonable period of time. iv. Planned draw down of fund balance for debt service funds is permitted only to account for fluctuations in the bond repayment schedule. v. Surplus fund balance above the minimum level can be used to reduce the Debt Service portion of the property tax levy or the amount of alternative revenues needed to meet the current years budgeted expenditures. d. Water and Sewer Fund i. Fund balance for water and sewer purposes shall consist of cash and investment balances. ii. The cash and investment balance shall be maintained at a level equal to 33% of subsequent fiscal year's expenditures. iii. Should the cash and investment balance drop below the 33% level, notification will be given to the Village Board and a plan developed to return the balance to the minimum level within a reasonable period of time. iv. Planned drawdown of the cash and investment balance below the 33% level will be permitted for operational purposes to cover extraordinary expenditures or bridge a revenue shortfall. Reductions in the balance are meant to be short term only and must be resolved through a fee adjustment dictated by a water and sewer rate study, implementation of a new permanent revenue source or reduction in expenditure levels. v. Surplus cash and investment balances above the 33% level can be used to support ongoing water and sewer capital projects or to defer or decrease future rate increases. e. Risk Management Fund i. Fund balance shall be maintained at a level equal to unpaid claims liability (as prepared by enrolled actuary), plus 50% of the self-insured retention level for auto and general liability claims, plus 50% of the subsequent fiscal year's expenditures for workers' compensation claims. ii. Should the unreserved fund balance drop below the minimum level, notification will be given to the Village Board and a plan developed to return the balance to the minimum level within a reasonable period of time. iii. Planned drawdown of fund balance below the minimum level will be permitted for operational purposes to cover extraordinary expenditures or to reduce the impact of increasing premiums or claims experience from health, workers' compensation or liability coverages. Reductions in the fund balance are meant to be short term only and must be resolved through rate adjustments, implementation of a new permanent revenue source or reduction in expenditure levels. iv. Surplus fund balance above the minimum level may be used to defer or reduce payments needed to support risk management operations. f. Internal Service Funds, Excluding Risk Management (Vehicle Maintenance, Vehicle Replacement, Computer Replacement) i. Fund balance shall be maintained at a level sufficient for the ongoing maintenance of computer and motor vehicle machinery and equipment. Fund balances shall also support the replacement of machinery and equipment according to its designated replacement schedule. ii. Should fund balance drop below the minimum level, notification will be given to the Village Board and lease payments by the departments will be adjusted to return balances to the minimum level within a reasonable period of time. iii. Surplus fund balance above the minimum level can be used to reduce future lease payments. g. Refuse Disposal Fund i. Fund balance shall be maintained at a level equal to 25% of subsequent fiscal year's expenditures. ii. Should the fund balance drop below the minimum level, notification will be given to the Village Board and a plan developed to return the balance to the minimum level within a reasonable period of time. iii. Planned drawdown of fund balance below the 25% level will be permitted for operational purposes or to cover extraordinary expenditures. Reductions in the fund balance are meant to be short term only and must be resolved through rate adjustments or reduction in expenditure levels. iv. Surplus fund balance above the 25% level can be used to support ongoing operations, reduce that portion of the property tax levy or defer future rate increases. h. Parking Funds i. Fund balance shall be maintained at a level equal to 25% of subsequent fiscal year's operating expenditures plus, adequate funds to complete all projects in the most recent Capital Improvement Plan for the year they are budgeted. ii. Should the unreserved fund balance drop below the minimum level, notification will be given to the Village Board and a plan developed to return the balance to the minimum level within a reasonable period of time. Capital projects planned for the year may need to be scaled back or deferred until a funding source is identified. iii. Planned drawdown of fund balance below the 25% level will be permitted for operational purposes to cover extraordinary expenditures or bridge a revenue shortfall. Reductions in the fund balance are meant to be short term only and must be resolved through rate adjustments or reduction in expenditure levels. iv. Surplus fund balance above the 25% level can be used to support ongoing parking capital projects or to defer future rate increases. i. Motor Fuel Fund i. Fund balance shall be maintained at a level equal to 25% of subsequent fiscal year's expenditures. ii. Should the fund balance drop below the minimum level, notification will be given to the Village Board and a plan developed to return the balance to the minimum level within a reasonable period of time. Some capital projects planned for the year may need to be scaled back or deferred until additional funding becomes available. i1i. Planned drawdown of fund balance below the 25% level will be permitted to cover extraordinary expenditures or bridge a revenue shortfall. Reductions in the fund balance are meant to be short term only and must be resolved through a reduction in expenditure levels. iv. Surplus fund balance above the 25% level can be used to support ongoing capital projects. j. Pension Fund i. The fund balance shall be adequate to fully fund the Police and Firefighter Pension Funds by the date required by state statute. An annual actuarial study will be performed to determine the appropriate level of funding. k. All Other Funds i. All other funds are used primarily for capital improvements or special revenue purposes. These balances will be reviewed annually to determine their adequacy for the expenditures scheduled. IV. Excess Reserve Levels: Unless specifically noted for a particular fund, reserves will not be permitted to exceed 100% of their fund's subsequent fiscal year's expenditures. If at any time these reserves exceed the maximum amount allowed, the Village Board will be mandated to transfer excess funds in an amount sufficient to bring reserves below the appropriate amount.